Financial Economics

SUBJECT INDEX

A

Absolute risk aversion, 229

Active return, 280

Adjusted present value, 621–623

Adverse selection, 134, 193

Agency effects, 514

Agency theory, 180, 473–474

Agent sentiment, 192

Alignment, 121, 135–142

asset specificity, 140–141

cost-effectiveness, 139–140

deal attributes and, 138

deal terms, 141–142

governance capabilities and, 138

principles, 136–137

process, 137–139

Allocation decisions, by individuals, 4

Allocative efficiency, 157

Alternative trading systems (ATS), 482n4

Ambiguity aversion, 191

American options, 414, 442–443

Anchoring, 190

Arbitrage, 347–349, 479–497, See also Impediments to arbitrage

pricing derivatives by, 385–410

Arbitrage-free prices, 366

Arbitrage, pricing derivatives by, 414–448, See also Nonlinear payoff derivative

Arbitrage opportunities, 367–369

absence of, 368–369

efficient market hypothesis, 368

financial market efficiency, 368–369

forms of, 367n3

fundamental security analysis, 368

profit-seeking eliminating, 367–369

strong-form efficient market, 368

technical analysis, 368

Arbitrage Pricing Theory (APT), 236, 309, 317–337

arbitrage opportunity, 319

in multifactor model, 320–322

in one-factor model, 319–320

Arbitrage without risk-neutral pricing, 393–397

Arbitrary payoffs, 443–445

Arrow-Debreu price, 347

Arrow-Debreu security, 200

Arrow possibility theorem, 462–464

Arrow-Pratt risk aversion, 184, 184n16, 226–230, 272n2

Asset-backed securities, 136, 570

Asset liquidity, 132

Asset pricing, 7–8, 339–364

arbitrage, 347–349

Arrow-Debreu ...